Anger, frustration and grief may cloud your judgment while you navigate your high-asset divorce. As you try to improve your emotional state, it’s also important to protect your financial well-being. Your valuable and hard-earned assets are at stake, so you need to make the right decisions.
Key documents to compile
Those involved in high-asset divorces usually get the services of an attorney, appraiser, accountant and other finance professionals. As this team collaborates, they may create a checklist to track everything that they need to accomplish.
The divorcing spouse also needs to gather or prepare the following financial documents:
- Prenuptial agreement: Prenups usually help simplify the property division process, but a spouse may contest the validity of a prenuptial agreement. This could delay finalizing the divorce.
- Financial statement: This should reflect all the assets and liabilities of a spouse. The figures should be accurate so that the computation will yield their actual net worth. As for the other party’s financial statement, a spouse may hire a forensic accountant to verify their full disclosure.
- Drafts of the updated estate plan: Divorcing spouses must prepare to revise their wills, trusts, living wills and powers of attorney. However, they can only update their estate plan after the divorce. Even if the courts revoke spousal designations post-divorce, being ready with revised drafts could ease the estate planning process.
There is also a need to update beneficiaries in investment, insurance and pension plans. Just like with estate plan documents, spouses can only update them after the divorce.
More financial considerations
Considering the possibility of alimony is crucial in a settlement involving substantial assets. When determining spousal support, you may consider your long-term retirement planning. If you have kids, you could factor in college planning as well. At the end of the day, it’s better to be prepared for the long haul.
Securing your fair share
A divorce that involves high-value assets is usually more complex. You need to keep tab on your assets because the going through the emotions of this big life change shouldn’t keep you from getting less than your fair share.
